POSTED BY November 2, 2012 4:36 pm COMMENTS (4)ON
Sir I Have taken a home loan from karnataka bank based on first year fixed and following 14 year on floating charge basis.Now I Am planning to tansfer my loan to another bank namely SBI so now karnataka bank is asking me to pay a sum of 1% on the loan amount as take over charges.Now i want to know whether there is any kind of rules such as to pay 1% penalty as take over charges to karnataka bank if there is any rules kindly give me information specifically as soon as possible.(if you send me email it is better)
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4 replies on this article “HL take over”
Dear G C Jayakumar, as per RBI’s gudelines, no Bank can ask for penalties on loan switch over or closure.
But most of the banks like SBI one of the leading sponsors of home loan have themself abolished takeover charges as per the guidelines of NHB.
But circulars of NHB says that they should not levy any kind of such charges on takeover.Please refer DBOD.No.Dir.BC.107/13.03.00/ and NHB(ND)/DRS/Pol-No.51/2012-13 Dated Aug 7,2012 circulars and report your opinions.
Generally, banks levy some penalty charges (say 1%-2%) when a loan is re-financed from other banks. Whether you need to pay 1% penalty would be written in Terms & conditions while you have applied for the loan. Please re-read the T&C again.